The consumers’ commitment and materialism on Islamic banking: the role of religiosity

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Junaidi Junaidi ◽  
Ready Wicaksono ◽  
Hamka Hamka
Keyword(s):  
Structural Equation ◽  
Survey Study ◽  
Equation Modeling ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Content Type ◽  
Positive Effects ◽  
Islamic Bank ◽  
Muslim People ◽  
The Impact

Purpose This paper aims to investigate whether and how religiosity (e.g. extrinsic and intrinsic) influences the mediator variables (consumers’ commitment and materialism) in the Islamic bank consumers context. It also examines how the mediators should be influence consumers’ preferences. Design/methodology/approach In total, 658 Muslim people and Islamic bank consumers were recruited for a survey study and structural equation modeling was used to test the research hypotheses. Findings The empirical results indicate that religiosity (e.g. extrinsic and intrinsic) has significant and positive effects on consumers’ commitment and materialism, whereas intrinsic religiosity has no significant effect on consumers’ commitment which subsequently influences consumers’ preference. Furthermore, mediator variables (e.g. consumers’ commitment and consumers’ materialism) have partial mediators between religiosity and consumers’ preferences. Research limitations/implications The current study was limited to Indonesian Muslim people; there is a future need to study consumers’ attitudes and engagement in religious products and services (e.g. Islamic brands). It is can help practitioners, regulators and researchers to observe the dynamic behavior to elaborate on the impact of religion and Islamic products on consumers’ preference. Practical implications The bank managers and regulators should enhance the information of products and services Islamic banks and the difference principle between conventional banks. Moreover, enlighten the consumers about the principle operation of Islamic banks from the perspective of marketing and religiosity. Originality/value This study contributes to consumers’ behavior literature and, specifically, for the decision-making process through developing and testing a model of religious determinants toward Islamic bank products, as well as offers new insights into the determinants of religion and consumers’ decision process toward Islamic banking.

Loyalty towards Islamic banking: service quality, emotional or religious driven?

2019 ◽  
Vol 11 (1) ◽  
pp. 66-80 ◽  
Author(s):  
Dwi Suhartanto ◽  
Christopher Gan ◽  
Ira Siti Sarah ◽  
Setiawan Setiawan
Keyword(s):  
Service Quality ◽  
Customer Loyalty ◽  
Structural Equation ◽  
Islamic Banking ◽  
Emotional Attachment ◽  
Islamic Banks ◽  
Content Type ◽  
Perceived Service Quality ◽  
Islamic Bank ◽  
Bank Managers

Purpose This paper aims to integrate and examine three loyalty routes (i.e. service quality, emotional attachment and religiosity) in developing customer loyalty towards Islamic banking. Design/methodology/approach Data were collected from 412 Islamic bank customers from Indonesia. Variance-based structural equation modelling was applied to evaluate the association between service quality, emotional attachment, religiosity and customer loyalty. Findings This study reveals that customer loyalty is more driven by emotional attachment and religiosity rather than by perceived service quality. Although not directly affecting customer loyalty, service quality strengthens customer satisfaction towards Islamic banks. Practical implications This study provides an opportunity for Islamic bank managers to increase their customer loyalty through the development of emotional attachment and religiosity. To improve customer loyalty, this study suggests that Islamic banks have to provide prompt, accurate and non-personal service. It is also important for Islamic bank managers to keep the bank operation compliant with the Sharia law. Originality/value This study is the first attempt to assess the three loyalty routes simultaneously in influencing customer loyalty.

Impact of environmental belief and nature-based destination image on ecotourism attitude

2020 ◽  
Vol 3 (4) ◽  
pp. 489-505
Author(s):  
Chi Nguyen Thi Khanh ◽  
Le Thai Phong
Keyword(s):  
Convergent Validity ◽  
Structural Equation ◽  
Discriminant Validity ◽  
Time Perspective ◽  
Reliability And Validity ◽  
Destination Image ◽  
Equation Modeling ◽  
Content Type ◽  
Positive Effects ◽  
The Impact

PurposeThis study examines the direct and indirect impact of environmental belief, nature-based destination image and time perspective on tourist attitude towards ecotourism.Design/methodology/approachData was collected through a structured questionnaire survey conducted in Vietnam. The dataset consists of 479 valid responses by Vietnamese tourists. Correlation analysis and structural equation modeling (SEM) were used to test the causal relationships among time perspective, environmental belief, nature-based destination and ecotourism attitude. Confirmatory factor analysis (CFA) is conducted to verify the reliability and validity of each latent construct, and to evaluate the discriminant validity, convergent validity, composition reliability and average variance extracted (AVE) for the latent constructs.FindingsThis study finds statistically significant and positive effects of time perspective, environmental belief and nature-based destination image on ecotourism attitude. The results also indicate that environmental belief is found to have statistically significant effects both direct and indirect on ecotourism attitude; its indirect effect is transmitted through nature-based destination image. Our findings demonstrate empirically that tourists are mainly attracted by natural environment sites and that tourists having environmental beliefs are likely to engage in ecotourism than other types of tourism by first influencing their attitude.Research limitations/implicationsOne limitation is associated with our measurement method, which relies on respondents’ self-ratings of their activities. Second, our study is based on internal consistency assessments for establishing construct reliability and validity, which might be the problem of measurement misspecification in tourism research and hinder us to adequately capture the dynamic nature of the variables and the underlying relationships. Third, the survey is conducted in one specific ecotourism nation like Vietnam, and thus, the findings must also be explained in this case.Practical implicationsPolicymakers need to pay careful attention to the planning and conservation of local resources, as well as infrastructure, for ecotourism development. Moreover, the management of eco-site needs to maintain ecology properly, provide an authentic ecotourism experience to improve ecotourism destination. Otherwise, ecotourism operators should focus on marketing strategies to increase traditional and natural values and promote eco-friendly social standards for fostering demand.Originality/valueThis study examines an integrated model analyzing the impact of time perspective, environmental belief and nature-based destination on tourist attitude towards ecotourism. This study reveals the understanding of how individuals’ view towards belief in environment and location image, influences their attitude to engage in ecotourism. The study provides several implications for practice.

scholarly journals Factors persuade individuals’ behavioral intention to opt for Islamic bank services

2019 ◽  
Vol 11 (1) ◽  
pp. 234-250 ◽  
Author(s):  
Anwar Bin Allah Pitchay ◽  
Mohamed Asmy Bin Mohd Thas Thaker ◽  
Zubir Azhar ◽  
Al Amin Mydin ◽  
Hassanudin Bin Mohd Thas Thaker
Keyword(s):  
Behavioral Intention ◽  
Structural Equation ◽  
Behavioral Control ◽  
Peninsular Malaysia ◽  
Equation Modeling ◽  
Islamic Banking ◽  
Perceived Behavioral Control ◽  
Banking Services ◽  
Content Type ◽  
Islamic Bank

Purpose The sustainable development of Islamic banking services has motivated a significant number of depositors to choose Islamic bank services instead of the conventional bank. There are various factors that can persuade the depositors’ choice to choose an Islamic bank. This paper aims to examine the factors that persuade individuals’ behavioral intention to choose Islamic bank services. Design/methodology/approach To achieve this objective, this study uses the theory of planned behavior (TPB) as the underlying theory to measure the factors that persuade the depositors’ behavioral intention to choose Islamic bank services. A total of 300 questionnaires were distributed to the Malaysian Islamic Bank’s depositors in Peninsular Malaysia. The data from the questionnaires were analyzed using structural equation modeling (SEM). Findings The result showed the three variables that predicted behavioral intentions of the depositors, namely, attitude (ATT), subjective norms (SN) and perceived behavioral control (PBC), were found to be significant in persuading depositors’ behavioral intention to choose Islamic bank services. Furthermore, the findings of the study also confirmed the relevance of using TPB to measure the depositors’ behavioral intention. The results could advance knowledge in the area of Islamic finance and also have positive implications for practitioners. Originality/value The study offers an insight into the present environment involving Islamic banking services which was established in Malaysia 30 years ago. In the context of the current study, the present environment refers to the depositors’ intention to opt for the service and the factors that influence the depositors to choose Islamic banking services apart from the religious factor which has been well acknowledged by a significant number of previous studies.

How important is CRM toward customer’s loyalty to conventional and Islamic bank marketing strategy?

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Jono Mintarto Munandar ◽  
Dewi Oktaviani ◽  
Yenni Angraini
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Relevant Literature ◽  
Internet Banking ◽  
Service Industries ◽  
Equation Modeling ◽  
Islamic Banks ◽  
Content Type ◽  
Conventional Banks ◽  
The Impact

Purpose This paper aims to test the effect of customer relationship management (CRM) strategy on customer loyalty of bank customers. Design/methodology/approach The questionnaire derived from previous studies along with relevant literature was completed by 100 customers of conventional banks and 100 customers of Islamic banks. Structural equation modeling assessed the impact on customer loyalty on three key constructs of CRM programs (continuity marketing, one to one marketing and partnering). Findings Two out of three variables, which is continuity marketing and partnering, have significant effects on both banks. Continuity marketing is the dominant variable at conventional banks. Partnering is the dominant variable at Islamic banks. Research limitations/implications The effects of CRM programs on customer loyalty observed in this study required further research. The data used in this study were only gathered from the banking industry in Indonesia, and so more research studies are needed to support the conclusion. Practical implications It is reasonable to conclude that customer loyalty can be built, strengthened and retained by CRM programs, aimed at increasing security and building trust in each transaction, improving partnership, optimize another bank’s service product like internet banking and SMS banking and communicating with customers in a timely manner. Originality/value Advanced and specific knowledge relevant to CRM in banking service industries.

scholarly journals Acceptance of Islamic banking as innovation: a case of Pakistan

Humanomics ◽  
2017 ◽  
Vol 33 (4) ◽  
pp. 499-516 ◽  
Author(s):  
Muhammad Ali ◽  
Chin-Hong Puah
Keyword(s):  
Diffusion Of Innovation ◽  
Structural Equation ◽  
Relative Advantage ◽  
Equation Modeling ◽  
Islamic Banking ◽  
Confirmatory Factor Analyses ◽  
Content Type ◽  
Islamic Bank ◽  
Bank Managers ◽  
Doi Theory

Purpose This study aims to investigate the factors that determine the customer adoption of Islamic banking in Pakistan. Design/methodology/approach This paper aims to use a sample of 540 Islamic bank customers located in the biggest city of Pakistan (Karachi). This study is based on the diffusion of innovation (DOI) theory and analyzed the role of five attributes (compatibility, relative advantage, complexity, observability and trialability) along with the consumer awareness about the customer adoption of Islamic banking. Additionally, the present research also considers Islamic banking as a new idea (innovation) in Pakistan under the framework of DOI theoretical assumptions. The exploratory and confirmatory factor analyses are applied to the sample data. The theoretical framework is then tested using structural equation modeling. Findings The findings of the study revealed that all five attributes of the DOI theory are positively and significantly related to the customer adoption of Islamic banking. The customer awareness also proved its importance in the hypothesized model by representing a positive and significant relationship. Originality/value The present study provides a useful guideline for the Islamic bank managers and the academicians to better understand the customer adoption of Islamic banking.

scholarly journals A contextual analysis of the impact of strategic sourcing and E-procurement on performance

2015 ◽  
Vol 30 (1) ◽  
pp. 1-16 ◽  
Author(s):  
Minkyun Kim ◽  
Nallan C Suresh ◽  
Canan Kocabasoglu-Hillmer
Keyword(s):  
Firm Performance ◽  
Product Life Cycle ◽  
Structural Equation ◽  
Positive Impact ◽  
Equation Modeling ◽  
Content Type ◽  
Strategic Sourcing ◽  
Research Results ◽  
Positive Effects ◽  
The Impact

Purpose – The aim of this study is to investigate the relationships among strategic sourcing, e-procurement and firm performance, along with the moderating effects of business characteristics and environmental factors on these relationships. Design/methodology/approach – This empirical investigation relies on structured survey responses from 137 managers of US manufacturing firms. The partial least squares-based structural equation modeling approach is used for data analysis. Findings – The research results confirm that both strategic sourcing and e-procurement have a positive effect on firm performance. In addition, e-procurement is also found to have a positive impact on strategic sourcing. In addition, the research results suggest that business characteristics and the environment, especially the degree of competition, market turbulence, firm size and stage in product life cycle moderate these relationships significantly. The positive effects of strategic sourcing and e-procurement on firm performance are particularly enhanced under the right conditions. Originality/value – This research is the first, to the best of our knowledge, to provide insights into the joint effects of strategic sourcing and e-procurement, and how business characteristics and the environment affect their roles on firm performance. In addition, firm performance is evaluated as a multi-dimensional construct involving financial, operational and supply chain aspects, with the measurements consisting of several second-order constructs. The study makes both theoretical and practical contributions.

Salesperson ethics behavior as antecedent of Islamic banking customer loyalty

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tony Wijaya ◽  
Moh Nasuka ◽  
Anas Hidayat
Keyword(s):  
Customer Loyalty ◽  
Structural Equation ◽  
Equation Modeling ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Consumer Loyalty ◽  
Islamic Ethics ◽  
Content Type ◽  
New Findings ◽  
Customer Trust

Purpose The development of the banking industry is encouraging increasingly fierce competition. In the face of banking competition, Islamic banks need to build customer loyalty by paying attention to ethical aspects. Ethics has an essential role in forming and preserve relationships between companies and customers in the long term. The measurement model of salesperson ethical behavior in this study was built using the Islamic-based marketing concept. This study aims to test empirical models of Islamic ethics-based salesperson behavior in increasing customer loyalty of Islamic banks through the aspect of customer trust. Design/methodology/approach Research data were obtained from 165 Islamic bank customers in the Central Java, Indonesia, using the purposive sampling method. Data analysis in this study uses structural equation modeling. Findings The study shows that the Islamic ethics-based salesperson behavior has a positive effect on customer trust in a salesperson, customers’ trust in Islamic banks and customer loyalty. Customer trust in a salesperson has positively and significantly influenced customer trust in Islamic banks and customer loyalty. Customer trust in Islamic banks has a positive and significant effect on customer loyalty. Practical implications This study’s results are expected to be used to reference maintenance salesperson in Islamic banking to behave based on Islamic principles. Islamic marketing principles need to be applied through salespersons behaving realistically (al-Waqi’iyyah) and humanistic concepts (insaniyyah). The application of Islamic ethics can limit and avoid deviant behavior from salespeople that is detrimental to consumers and organizations. The behavior of salespeople based on Islamic ethics will build consumer trust in both organizations and salesperson so that it has implications for consumer loyalty. Originality/value This paper provides new findings to understand Islamic banking consumer loyalty that focuses on Islamic ethical salesperson behavior point of view. This paper also presents a new measurement of research variables from an Islamic perspective in examining the role of Islamic ethics-based salesperson behavior toward banking customer loyalty. This study takes the object of research in Islamic banking that has different characteristics from conventional financial institutions.

Does intention influence the financial literacy of depositors of Islamic banking? A case of Malaysia

2020 ◽  
Vol 47 (5) ◽  
pp. 675-690
Author(s):  
Yuvaraj Ganesan ◽  
Anwar Bin Allah Pitchay ◽  
Mohd Aliff Mohd Nasser
Keyword(s):  
Peer Review ◽  
Structural Equation ◽  
Banking System ◽  
Cultural Bias ◽  
Basic Knowledge ◽  
Islamic Banking ◽  
Islamic Banks ◽  
Financial Industry ◽  
Content Type ◽  
Islamic Bank

PurposeSince the establishment of Islamic banks in Malaysia since the 1980s, the banking system has undergone rampant development within the financial industry. It has resulted in a positive competitive challenge for the conventional banks and able to attract not just the Muslim customers, but also those non-Muslim customers. At the same time, understanding the customers' knowledge of Islamic banking products is an interesting issue to explore. This issue is raised because the Islamic bank products are often packaged using Arabic terms, even though it is marketed in non-Arabic countries like Malaysia. Therefore, this study aims to examine the factors that influence the intention of the Islamic banking customers as the result of relying on some information produced by Malaysian Islamic banks.Design/methodology/approachThis study is conducted using the existing underpinning theory of planned behaviour (TPB). A total of 300 questionnaires were analysed using the structural equation modelling (SEM).FindingsThe results indicated that perceived behavioural control, attitude and subjective norms of the Islamic banking depositors are positively influenced by the intention of the depositors to learn about Islamic banking.Research limitations/implicationsOne of the main issues faced in this study is the result cannot be generalised. It is not possible to know based on the collected data if the sample is representative, other than the fact that all of the respondents are Islamic bank depositors. Nevertheless, it can still be a catalyst for further research as a link to existing findings in the area. There might be a bias on the understanding of the respondents about Islamic banking. This is due to the fact that Malaysia is a multi-racial population. Malay people might have a better understanding and basic knowledge about Islamic banking than the Chinese, Indians and other races. This cultural bias could be overcome in future studies by identifying respondents who have experiences in dealing with Islamic banking.Originality/valueThis study provides interesting insights of the Malaysian banking industry in terms of the multi-racial customers' intention to learn about Islamic banking, which is scarcely discussed in the extant literature.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-01-2019-0011.

Contrasting the drivers of customer loyalty; financing and depositor customer, single and dual customer, in Indonesian Islamic bank

2019 ◽  
Vol 11 (4) ◽  
pp. 933-959 ◽  
Author(s):  
Tika Kartika ◽  
Achmad Firdaus ◽  
Mukhamad Najib
Keyword(s):  
Customer Satisfaction ◽  
Marketing Strategy ◽  
Corporate Culture ◽  
Significant Relationship ◽  
Structural Equation ◽  
Equation Modeling ◽  
Islamic Banks ◽  
Content Type ◽  
Islamic Bank ◽  
Customer Trust

Purpose This study aims to investigate the drivers of loyalty in Indonesian Islamic banks, especially group of depositor vs financing customer and single vs dual customer. Design/methodology/approach The objectives of this study were the seven major commercial Indonesian Islamic banks using the purposive sampling technique. In total, 105 questionnaires were processed, consisting of questions regarding depositors, financing, single and dual customer. Structural equation modeling using partial least squares were the analysis methods used to test the hypothesis, while in-depth interviews were conducted with Islamic bank managers to validate the findings. Findings Image has a significant relationship with customer satisfaction, as well as trust. Similarly, customer satisfaction has a significant relationship with trust. Trust has a significant relationship with loyalty. For a financing customer, the image is very influential on customer trust. For a depositor customer, customer satisfaction is very influential on customer trust. For single customer, customer satisfaction has a stronger influence on the image, compared to dual customer. Practical implications Islamic banks need to maintain good image and service quality to create strong, reliable and long-term relationships with customers, more specifically, in terms of improvement and product innovation. A bank focuses on the micro or macro segment, as well as financing. Financing products should be referred to customers’ needs. Bank reputation can be done by strengthening branding and corporate culture in marketing strategy. Shariah compliance has the highest loading factor to trust customers. Indonesian Islamic banks need to maintain customer trust by sticking to Islamic principles and continuing to ensure that its products and services are in accordance with Islamic principles. In Indonesian Islamic banks, it is very important to keep the legal aspects in all of products and services. Deposit products and services of Islamic banks should be in line with the rules of the financial services authority and Bank of Indonesia culture. Bank efforts to strengthen reputation can be done by strengthening branding and corporate culture in marketing strategy, while increasing the attractiveness of the products by way of research and development (R&D) must endeavor to make products and services attractive in terms of both product characteristics and price. Furthermore, it is necessary to support a good marketing strategy to market their products. Social implications Research can be used more widely in determining public policy, by strengthening the marketing strategy and public education. Islamic banks can work together with local religious departments to maximize marketing strategies to educate and convince people to be active economically under Islamic sharia guidance. Islamic banks need to maintain customer trust by sticking to the principles of sharia and continuing to ensure that products and services conform to sharia principles. Islamic bank management can strengthen customer trust by having a good risk management system, so that customers feel secure with Islamic bank transactions. In addition, sharia banks as companies must demonstrate social responsibility by distributing ZIS managed from customers and implementing CSR as a form of awareness of the surrounding community. Originality/value The study revealed the factors that lead to loyalty on the financing, depositor and the single and dual customers. The study found that improvement and innovation, strategic and sustainability are new indicators used to build images of Islamic banks.

“Green” practices as antecedents of functional value, guest satisfaction and loyalty

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mihaela Simona Moise ◽  
Irene Gil-Saura ◽  
María-Eugenia Ruiz-Molina
Keyword(s):  
Structural Equation ◽  
Perceived Value ◽  
Equation Modeling ◽  
Content Type ◽  
Positive Effects ◽  
Revisit Intention ◽  
Functional Value ◽  
Green Practices ◽  
Guest Satisfaction ◽  
The Impact

PurposeTo respond to the environmental demands of consumers, more and more hotels are increasingly striving to implement sustainable practices to satisfy the requests of environmentally conscious consumers. This paper aims to propose and test the relationship between these “green” initiatives and functional value as perceived by tourists, guest satisfaction and intentions to revisit the hotel and to spread positive word-of-mouth (WOM).Design/methodology/approachA sample of 378 guests who stayed in a three- and four-star hotel was used. Structural equation modeling (SEM) was used to test the proposed relationships. Confirmatory factor analysis and structural equational modeling were used to test the proposed model.FindingsThe results of the data analysis indicated that the impact of “green” practices on perceived value, satisfaction, intention to revisit and WOM. In addition, the positive effects of functional value on guest satisfaction and WOM are also confirmed.Practical implicationsCustomers' revisit intention is not only created when hotels implement “green” practices, but also when the degree of customer satisfaction with the hotel increases. In this sense, managers are encouraged to pay more attention to environmental initiatives as an essential tool to increase the level of guests' satisfaction.Originality/valueThe study yields several implications that can be helpful for managers while devising green marketing strategies for the hotel sector. The results show that guests tend to develop greater levels of loyalty to a specific hotel when they are satisfied with the services offered by the hotel. In this sense, the environmental measures implemented by companies are a key strategic tool, given their essential role in the construction of perceived value, guest satisfaction as well as WOM and revisit intention.

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